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        <li class="chapter active" data-level="1.1" data-path="./">
            
                <a href="./">
            
                    
                    Introduction
            
                </a>
            

            
        </li>
    
        <li class="chapter " data-level="1.2" data-path="Lecture01/">
            
                <a href="Lecture01/">
            
                    
                    Lecture 1: Introduction
            
                </a>
            

            
        </li>
    
        <li class="chapter " data-level="1.3" data-path="Lecture02/">
            
                <a href="Lecture02/">
            
                    
                    Lecture 2: Economics is a Social Science
            
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            <ul class="articles">
                
    
        <li class="chapter " data-level="1.3.1" data-path="Lecture02/Section01.html">
            
                <a href="Lecture02/Section01.html">
            
                    
                    Section1: Economics is a Science – Methodology of Science (1): Refutability
            
                </a>
            

            
        </li>
    
        <li class="chapter " data-level="1.3.2" data-path="Lecture02/Section02.html">
            
                <a href="Lecture02/Section02.html">
            
                    
                    Section 2: Economics is a Social Science
            
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        <li class="chapter " data-level="1.3.3" data-path="Lecture02/Section03.html">
            
                <a href="Lecture02/Section03.html">
            
                    
                    Section 3: Why Do We Need to Study Economics?
            
                </a>
            

            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.4" data-path="Lecture03/">
            
                <a href="Lecture03/">
            
                    
                    Lecture 3: Self-interest: the Postulate of Economics
            
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            <ul class="articles">
                
    
        <li class="chapter " data-level="1.4.1" data-path="Lecture03/Section01.html">
            
                <a href="Lecture03/Section01.html">
            
                    
                    Section 1: Self-interest
            
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        <li class="chapter " data-level="1.4.2" data-path="Lecture03/Section02.html">
            
                <a href="Lecture03/Section02.html">
            
                    
                    Section 2: The Postulate Needs not to be True
            
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        <li class="chapter " data-level="1.4.3" data-path="Lecture03/Section03.html">
            
                <a href="Lecture03/Section03.html">
            
                    
                    Section 3: The Postulate of Self-interest Must be Followed
            
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        <li class="chapter " data-level="1.4.4" data-path="Lecture03/Section04.html">
            
                <a href="Lecture03/Section04.html">
            
                    
                    Section 4: Rationality is not Equivalent to Correctness
            
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        <li class="chapter " data-level="1.4.5" data-path="Lecture03/Section05.html">
            
                <a href="Lecture03/Section05.html">
            
                    
                    Section 5: The Consequences of Ignoring the Postulate of Self-interest
            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.5" data-path="Lecture04/">
            
                <a href="Lecture04/">
            
                    
                    Lecture 4: Scarcity, Competition, Market, and Non-market
            
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        <li class="chapter " data-level="1.5.1" data-path="Lecture04/Section01.html">
            
                <a href="Lecture04/Section01.html">
            
                    
                    Section 1: Scarcity
            
                </a>
            

            
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        <li class="chapter " data-level="1.5.2" data-path="Lecture04/Section02.html">
            
                <a href="Lecture04/Section02.html">
            
                    
                    Section 2: Competition, Competition Criterion, and Game rule
            
                </a>
            

            
        </li>
    
        <li class="chapter " data-level="1.5.3" data-path="Lecture04/Section03.html">
            
                <a href="Lecture04/Section03.html">
            
                    
                    Section 3: The Postulate of Self-interest Must be Followed
            
                </a>
            

            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.6" data-path="Lecture05/">
            
                <a href="Lecture05/">
            
                    
                    Lecture 5: Positive Economics and Normative Economics
            
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        <li class="chapter " data-level="1.6.1" data-path="Lecture05/Section01.html">
            
                <a href="Lecture05/Section01.html">
            
                    
                    Section1: Positive economics
            
                </a>
            

            
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        <li class="chapter " data-level="1.6.2" data-path="Lecture05/Section02.html">
            
                <a href="Lecture05/Section02.html">
            
                    
                    Section 2: Normative economics
            
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        </li>
    
        <li class="chapter " data-level="1.6.3" data-path="Lecture05/Section03.html">
            
                <a href="Lecture05/Section03.html">
            
                    
                    Section3: Value Judgment
            
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        <li class="chapter " data-level="1.6.4" data-path="Lecture05/Section04.html">
            
                <a href="Lecture05/Section04.html">
            
                    
                    Section 4: The Problems of Welfare Economics
            
                </a>
            

            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.7" data-path="Lecture06/">
            
                <a href="Lecture06/">
            
                    
                    Lecture 6: The History of Economic Thinking -- Microeconomics and Macroeconomics
            
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        <li class="chapter " data-level="1.7.1" data-path="Lecture06/Section01.html">
            
                <a href="Lecture06/Section01.html">
            
                    
                    Section 1: From Classical Economics to Neoclassical Economics
            
                </a>
            

            
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        <li class="chapter " data-level="1.7.2" data-path="Lecture06/Section02.html">
            
                <a href="Lecture06/Section02.html">
            
                    
                    Section 2: The Rise and Decline of Keynesian Economics
            
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        <li class="chapter " data-level="1.7.3" data-path="Lecture06/Section03.html">
            
                <a href="Lecture06/Section03.html">
            
                    
                    Section 3: Price Theory and Monetary Theory
            
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        <li class="chapter " data-level="1.7.4" data-path="Lecture06/Section04.html">
            
                <a href="Lecture06/Section04.html">
            
                    
                    Section 4: The Causes of the Great Depression
            
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        <li class="chapter " data-level="1.7.5" data-path="Lecture06/Section05.html">
            
                <a href="Lecture06/Section05.html">
            
                    
                    Section 5: More Truths about the Great Depression
            
                </a>
            

            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.8" data-path="Lecture07/">
            
                <a href="Lecture07/">
            
                    
                    Lecture 7: Equilibrium•Optimum•Margin
            
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        <li class="chapter " data-level="1.8.1" data-path="Lecture07/Section01.html">
            
                <a href="Lecture07/Section01.html">
            
                    
                    Section 1: Equilibrium and Optimum
            
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        <li class="chapter " data-level="1.8.2" data-path="Lecture07/Section02.html">
            
                <a href="Lecture07/Section02.html">
            
                    
                    Section 2: The Concept of Margin
            
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        <li class="chapter " data-level="1.8.3" data-path="Lecture07/Section03.html">
            
                <a href="Lecture07/Section03.html">
            
                    
                    Section 3: The Economic Implication of Marginal Analysis
            
                </a>
            

            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.9" data-path="Lecture08/">
            
                <a href="Lecture08/">
            
                    
                    Lecture 8: The Law of Demand
            
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        <li class="chapter " data-level="1.9.1" data-path="Lecture08/Section01.html">
            
                <a href="Lecture08/Section01.html">
            
                    
                    Section 1: The Law of Demand and its Key Points
            
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        <li class="chapter " data-level="1.9.2" data-path="Lecture08/Section02.html">
            
                <a href="Lecture08/Section02.html">
            
                    
                    Section 2: Ceteris Paribus
            
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        <li class="chapter " data-level="1.9.3" data-path="Lecture08/Section03.html">
            
                <a href="Lecture08/Section03.html">
            
                    
                    Section 3: The Explanation of “Buying on the upswing, Selling on the downswing” in the Stock Market
            
                </a>
            

            
        </li>
    
        <li class="chapter " data-level="1.9.4" data-path="Lecture08/Section04.html">
            
                <a href="Lecture08/Section04.html">
            
                    
                    Section 4: The Selection of Other Factors –Methodology of Science (2): Occam’s Razor
            
                </a>
            

            
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        <li class="chapter " data-level="1.9.5" data-path="Lecture08/Section05.html">
            
                <a href="Lecture08/Section05.html">
            
                    
                    Section 5: The Role of the Law of Demand as An axiom
            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.10" data-path="Lecture09/">
            
                <a href="Lecture09/">
            
                    
                    Lecture 9: Supply Curve, the Theory of Supply and Demand, the Price Intervention by Government
            
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            <ul class="articles">
                
    
        <li class="chapter " data-level="1.10.1" data-path="Lecture09/Section01.html">
            
                <a href="Lecture09/Section01.html">
            
                    
                    Section 1: The Supply Curve
            
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        </li>
    
        <li class="chapter " data-level="1.10.2" data-path="Lecture09/Section02.html">
            
                <a href="Lecture09/Section02.html">
            
                    
                    Section 2: The Theory of Supply and Demand
            
                </a>
            

            
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        <li class="chapter " data-level="1.10.3" data-path="Lecture09/Section03.html">
            
                <a href="Lecture09/Section03.html">
            
                    
                    Section 3: The Traditional Analysis of Price Control and Its Problem
            
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        <li class="chapter " data-level="1.10.4" data-path="Lecture09/Section04.html">
            
                <a href="Lecture09/Section04.html">
            
                    
                    Section 4: Price Control Causes Transaction Cost to Increase
            
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        <li class="chapter " data-level="1.10.5" data-path="Lecture09/Section05.html">
            
                <a href="Lecture09/Section05.html">
            
                    
                    Section 5: Minimum Wage Laws Cause Unemployment
            
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        <li class="chapter " data-level="1.10.6" data-path="Lecture09/Section06.html">
            
                <a href="Lecture09/Section06.html">
            
                    
                    Section 6: The Consequence of Agricultural Price Supports
            
                </a>
            

            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.11" data-path="Lecture10/">
            
                <a href="Lecture10/">
            
                    
                    Lecture 10: Consumer Theory
            
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            <ul class="articles">
                
    
        <li class="chapter " data-level="1.11.1" data-path="Lecture10/Section01.html">
            
                <a href="Lecture10/Section01.html">
            
                    
                    Section 1: Two Axioms of Consumer Theory
            
                </a>
            

            
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        <li class="chapter " data-level="1.11.2" data-path="Lecture10/Section02.html">
            
                <a href="Lecture10/Section02.html">
            
                    
                    Section 2: Use Value VS Utility — Methodology of Science (3): What is measure in science?
            
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        <li class="chapter " data-level="1.11.3" data-path="Lecture10/Section03.html">
            
                <a href="Lecture10/Section03.html">
            
                    
                    Section 3: Indifference Curve
            
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        </li>
    
        <li class="chapter " data-level="1.11.4" data-path="Lecture10/Section04.html">
            
                <a href="Lecture10/Section04.html">
            
                    
                    Section 4: The Optimum of the Consumer
            
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        <li class="chapter " data-level="1.11.5" data-path="Lecture10/Section05.html">
            
                <a href="Lecture10/Section05.html">
            
                    
                    Section 5: The Changes of the Optimum of the Consumer
            
                </a>
            

            
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        <li class="chapter " data-level="1.11.6" data-path="Lecture10/Section06.html">
            
                <a href="Lecture10/Section06.html">
            
                    
                    Section 6: Are there Giffen Goods?
            
                </a>
            

            
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        <li class="chapter " data-level="1.11.7" data-path="Lecture10/Section07.html">
            
                <a href="Lecture10/Section07.html">
            
                    
                    Section 7: From Individual Demand to Market Demand
            
                </a>
            

            
        </li>
    
        <li class="chapter " data-level="1.11.8" data-path="Lecture10/Section08.html">
            
                <a href="Lecture10/Section08.html">
            
                    
                    Section 8: Is There Theory of Elasticity?
            
                </a>
            

            
        </li>
    

            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.12" data-path="Lecture11/">
            
                <a href="Lecture11/">
            
                    
                    Lecture 11: The Concept of Cost
            
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            <ul class="articles">
                
    
        <li class="chapter " data-level="1.12.1" data-path="Lecture11/Section01.html">
            
                <a href="Lecture11/Section01.html">
            
                    
                    Section 1: Opportunity Cost
            
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        <li class="chapter " data-level="1.12.2" data-path="Lecture11/Section02.html">
            
                <a href="Lecture11/Section02.html">
            
                    
                    Section 2: Historical Cost is not Cost
            
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        <li class="chapter " data-level="1.12.3" data-path="Lecture11/Section03.html">
            
                <a href="Lecture11/Section03.html">
            
                    
                    Section3: The Disturbance of Historical Cost
            
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        <li class="chapter " data-level="1.12.4" data-path="Lecture11/Section04.html">
            
                <a href="Lecture11/Section04.html">
            
                    
                    Section 4: The Laboratory in Economics
            
                </a>
            

            
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            </ul>
            
        </li>
    
        <li class="chapter " data-level="1.13" data-path="Lecture12/">
            
                <a href="Lecture12/">
            
                    
                    Lecture 12: The Concept of Rent
            
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            <ul class="articles">
                
    
        <li class="chapter " data-level="1.13.1" data-path="Lecture12/Section01.html">
            
                <a href="Lecture12/Section01.html">
            
                    
                    Section 1: From Income and Cost to Rent
            
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        <li class="chapter " data-level="1.13.2" data-path="Lecture12/Section02.html">
            
                <a href="Lecture12/Section02.html">
            
                    
                    Section 2: The Changeable Rent
            
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        <li class="chapter " data-level="1.13.3" data-path="Lecture12/Section03.html">
            
                <a href="Lecture12/Section03.html">
            
                    
                    Section 3: The Concept of Rent from the First Perspective
            
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        <li class="chapter " data-level="1.13.4" data-path="Lecture12/Section04.html">
            
                <a href="Lecture12/Section04.html">
            
                    
                    Section 4: The Concept of Rent from the Second Perspective
            
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        <li class="chapter " data-level="1.13.5" data-path="Lecture12/Section05.html">
            
                <a href="Lecture12/Section05.html">
            
                    
                    Section 5: Profit
            
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        </li>
    
        <li class="chapter " data-level="1.14" data-path="Lecture13/">
            
                <a href="Lecture13/">
            
                    
                    Lecture 13: Direct Cost and Overhead Cost
            
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        <li class="chapter " data-level="1.14.1" data-path="Lecture13/Section01.html">
            
                <a href="Lecture13/Section01.html">
            
                    
                    Section 1: The Fallacy of Fixed Cost
            
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        <li class="chapter " data-level="1.14.2" data-path="Lecture13/Section02.html">
            
                <a href="Lecture13/Section02.html">
            
                    
                    Section 2: Direct Cost and Overhead Cost
            
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        <li class="chapter " data-level="1.14.3" data-path="Lecture13/Section03.html">
            
                <a href="Lecture13/Section03.html">
            
                    
                    Section 3: The Explanation of Producers’ Behaviors with Overhead Cost
            
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        <li class="chapter " data-level="1.14.4" data-path="Lecture13/Section04.html">
            
                <a href="Lecture13/Section04.html">
            
                    
                    Section 4: The Principle of Rent Matching
            
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        <li class="chapter " data-level="1.14.5" data-path="Lecture13/Section05.html">
            
                <a href="Lecture13/Section05.html">
            
                    
                    Section 5: The Form of Contract Affects Overhead Cost
            
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            </ul>
            
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        <li class="chapter " data-level="1.15" data-path="Lecture14/">
            
                <a href="Lecture14/">
            
                    
                    Lecture 14: Transaction Cost
            
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        <li class="chapter " data-level="1.15.1" data-path="Lecture14/Section01.html">
            
                <a href="Lecture14/Section01.html">
            
                    
                    Section 1: Transaction Cost is Indispensable
            
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        <li class="chapter " data-level="1.15.2" data-path="Lecture14/Section02.html">
            
                <a href="Lecture14/Section02.html">
            
                    
                    Section 2: The History of Transaction Cost
            
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        <li class="chapter " data-level="1.15.3" data-path="Lecture14/Section03.html">
            
                <a href="Lecture14/Section03.html">
            
                    
                    Section 3: From the Special Transaction Cost to the General Transaction Cost — Methodology of Science (4): Ad Hoc Theory
            
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        <li class="chapter " data-level="1.15.4" data-path="Lecture14/Section04.html">
            
                <a href="Lecture14/Section04.html">
            
                    
                    Section 4: The Perspective of Contract
            
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        <li class="chapter " data-level="1.16" data-path="Lecture15/">
            
                <a href="Lecture15/">
            
                    
                    Lecture 15: Market Structure – Price-Taking
            
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        <li class="chapter " data-level="1.16.1" data-path="Lecture15/Section01.html">
            
                <a href="Lecture15/Section01.html">
            
                    
                    Section 1: The Definition of Price-Taking
            
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        <li class="chapter " data-level="1.16.2" data-path="Lecture15/Section02.html">
            
                <a href="Lecture15/Section02.html">
            
                    
                    Section 2: The Optimum of Producers
            
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        <li class="chapter " data-level="1.16.3" data-path="Lecture15/Section03.html">
            
                <a href="Lecture15/Section03.html">
            
                    
                    Section 3: The Law of Diminishing Marginal Product
            
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        <li class="chapter " data-level="1.16.4" data-path="Lecture15/Section04.html">
            
                <a href="Lecture15/Section04.html">
            
                    
                    Section 4: Average Cost
            
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        <li class="chapter " data-level="1.16.5" data-path="Lecture15/Section05.html">
            
                <a href="Lecture15/Section05.html">
            
                    
                    Section 5: The Theory of Supply and Demand with Production
            
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        <li class="chapter " data-level="1.16.6" data-path="Lecture15/Section06.html">
            
                <a href="Lecture15/Section06.html">
            
                    
                    Section 6: Consumer Surplus and Producer Surplus
            
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        <li class="chapter " data-level="1.17" data-path="Lecture16/">
            
                <a href="Lecture16/">
            
                    
                    Lecture 16: Market Structure – Price-Searching
            
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        <li class="chapter " data-level="1.17.1" data-path="Lecture16/Section01.html">
            
                <a href="Lecture16/Section01.html">
            
                    
                    Section 1: The Definition of Price-Searching
            
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                    Section 2: The Cause of Monopoly (I): Innate Talent
            
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        <li class="chapter " data-level="1.17.3" data-path="Lecture16/Section03.html">
            
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                    Section 3: The Cause of Monopoly (II): Acquired Construction
            
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                    Section 4: The Ambiguous Antitrust Law
            
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                    Section 5: Administrative Monopoly
            
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        <li class="chapter " data-level="1.17.6" data-path="Lecture16/Section06.html">
            
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                    Section 6: The Deadweight Loss of Monopoly
            
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        <li class="chapter " data-level="1.17.7" data-path="Lecture16/Section07.html">
            
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                    Section 7: Turning Consumer Surplus to Producer Surplus
            
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        <li class="chapter " data-level="1.17.8" data-path="Lecture16/Section08.html">
            
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                    Section 8: The Other Price Arrangements to Eliminate Deadweight Loss
            
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                    Section 9: Quality Competition
            
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        <li class="chapter " data-level="1.17.10" data-path="Lecture16/Section10.html">
            
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                    Section 10: Cartels
            
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        <li class="chapter " data-level="1.17.11" data-path="Lecture16/Section11.html">
            
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                    Section 11: The Fallacy of Game Theory
            
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        <li class="chapter " data-level="1.18" data-path="Lecture17/">
            
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                    Lecture 17: Information Cost
            
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                    Section 1: Information Cost in Society
            
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                    Section 2: The Behaviors Reducing Information Cost
            
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        <li class="chapter " data-level="1.18.3" data-path="Lecture17/Section03.html">
            
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                    Section 3: The Behaviors Increasing Information Cost
            
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        <li class="chapter " data-level="1.18.4" data-path="Lecture17/Section04.html">
            
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                    Section 4: The Price-Searching Caused by Information Cost
            
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                    Section 5: Replacing Risk with Information Cost
            
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        <li class="chapter " data-level="1.18.6" data-path="Lecture17/Section06.html">
            
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                    Section 6: Insurance
            
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        <li class="chapter " data-level="1.18.7" data-path="Lecture17/Section07.html">
            
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                    Section 7: Adverse Selection and Moral Hazard
            
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        <li class="chapter " data-level="1.18.8" data-path="Lecture17/Section08.html">
            
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                    Section 8: The Extremely Low Rate of Return of Social Pension Insurance
            
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        <li class="chapter " data-level="1.18.9" data-path="Lecture17/Section09.html">
            
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                    Section 9: SOP is An Irrelevant Answer
            
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        <li class="chapter " data-level="1.19" data-path="Lecture18/">
            
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                    Lecture 18: The Theory of Interest
            
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                    Section 1: The Causes of Interest
            
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                    Section 2: Interest Rate
            
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                    Section 3: The Discount Formula
            
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                    Section 4: From Asset to Capital, Annuity, Investment and Saving
            
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                    Section 5: The Separation Theorem
            
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        <li class="chapter " data-level="1.20" data-path="Lecture19/">
            
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                    Lecture 19: Monetary Theory
            
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                    Section 1: The Functions of Money
            
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        <li class="chapter " data-level="1.20.2" data-path="Lecture19/Section02.html">
            
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                    Section 2: The Value of Good VS the Value of Money
            
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        <li class="chapter " data-level="1.20.3" data-path="Lecture19/Section03.html">
            
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                    Section 3: The Cause of Inflation
            
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                    Section 4: The History of Money
            
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                    Section 5: The Harm of Inflation and Deflation
            
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                    Section 6: The History of Paper Money
            
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                    Section 7: The Truth of Bretton Woods System
            
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                    Section 8: The Quantity Theory of Money
            
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        <li class="chapter " data-level="1.20.9" data-path="Lecture19/Section09.html">
            
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                    Section 9: Money Multiplier
            
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                    Section 10: The Monetary Policy Tools of Central Bank
            
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                    Section 11: The Difficulty in the Target of Monetary Policy
            
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                    Section 12: The Formation of Zhu’s Monetary System
            
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                    Section 13: From the Monetary Policy Regulating Economy to the Monetary System Stabilizing Money Value
            
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                    Section 14: The Monetary System Pegging Money to the Price Index of a Basket of Tradable Goods
            
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                    Lecture 20: Income Distribution, Wage Contract, Unemployment
            
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                    Section 1: Income Distribution: Marginal Productivity Theory
            
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                    Section 2: Wage Contract
            
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                    Section 3: The Theory of Rent-encroaching
            
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                    Section 4: The Causes of Unemployment
            
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                    Section 5: Natural Rate of Unemployment
            
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                    Lecture 21: The Critique on Keynes’s Theory of National Income Determination
            
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                    Section 1: The Statistical Index of National Income: GDP
            
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                    Section 2: Is Saving Different From Investment?
            
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                    Section 3: The Problem in the Theory of Multiplier
            
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                    Section 4: The Problem in Keynes’s Consumption Function
            
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                    Section 5: The Pandora’s Box of Fiscal Deficit
            
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                    Section 6: The Crowding-out Effect of Government Expenditure
            
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                    Lecture 22: Business Cycle and Economic Growth
            
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                    Section 1: Financial Crisis cannot Destroy Real Wealth
            
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                    Section 2: The Importance of Expectation/Confidence
            
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                    Section 3: The Determinants of Economic Performance
            
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                    Lecture 23: Coase Theorem
            
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                    Section 1: The First Version of Coase Theorem
            
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                    Section 2: The Second Version of Coase Theorem
            
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                    Section 3: The Third Version of Coase Theorem
            
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                    Lecture 24: Externality
            
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                    Section 1: The Cause of Externality
            
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                    Lecture 25: Rent Dissipation
            
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                    Section 1: The Concept of Rent Dissipation
            
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                    Section 2: The Relation between Non-Price Criteria and Rent Dissipation
            
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                    Section 3: The Core of the Theory of Price Control
            
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                    Section 4: Rent Dissipation as a Mode of Thinking
            
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                    Lecture 26 Political Economics
            
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                    Section 1: The Nature of Nation from the Perspective of Economics
            
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                    Section 2: The Definition of Dictatorship and Democracy
            
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                    Section 5: Democratic Voting Infringes on PPRs
            
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                    Section 6: The Difficulties of Dictatorship
            
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                                <h1 id="lectures-on-economics">Lectures on Economics</h1>
<h2 id="read-online">Read Online:</h2>
<p><a href="https://lectures-on-economics-git-main-dominguitolamo.vercel.app/" target="_blank">https://lectures-on-economics-git-main-dominguitolamo.vercel.app/</a></p>
<h3 id="the-book-is-allowed-to-read-in-pdf-format-you-can-download-it-in-the-repository-github-or-gitee">The book is allowed to read in PDF format. You can download it in the repository, Github or Gitee.</h3>
<h2 id="introduction">Introduction</h2>
<p><strong>Lectures on Economics</strong> inherits the academic discipline from <strong>Economic Explanation</strong> by Steven N.G Cheung. It reestablishes economic theory and explains economic phenomenon with Methodology of Science.</p>
<p>Lectures 1 &#x2013; 10 introduces the methodology of science and the basic concept of price theory, the foundation of economic theory. Lectures 11- 17 are of producer theory, explaining the producer behavior. Lecture 18 is interest theory, the foundation of finance. Lectures 19-22 are concerned with monetary theory and give the critiques of macroeconomics. Lectures 23-25 turn to new institution economics. It demonstrates the importance of institution from the perspective of transaction cost. Lecture 26, the final lecture, studies politics with economic theory.</p>
<p>Please give the star to the project if you like the textbook. It is welcome to fork it to improve it.</p>
<p>We hope that the English na&#xEF;ve speaker who understands Chinese would improve the translation since the translators are the amateurs. You can send email to <strong>Eileen Li (908961321@qq.com)</strong>, the author, to communicate.</p>
<h2 id="content">Content:</h2>
<ul>
<li><a href="Lecture01/">Lecture 1: Introduction</a></li>
<li><a href="Lecture02/">Lecture 2: Economics is a Social Science</a><ul>
<li><a href="Lecture02/Section01.html">Section1: Economics is a Science &#x2013; Methodology of Science (1): Refutability</a></li>
<li><a href="Lecture02/Section02.html">Section 2: Economics is a Social Science</a></li>
<li><a href="Lecture02/Section03.html">Section 3: Why Do We Need to Study Economics?</a></li>
</ul>
</li>
<li><a href="Lecture03/">Lecture 3: Self-interest: the Postulate of Economics</a><ul>
<li><a href="Lecture03/Section01.html">Section 1: Self-interest</a></li>
<li><a href="Lecture03/Section02.html">Section 2: The Postulate Needs not to be True</a></li>
<li><a href="Lecture03/Section03.html">Section 3: The Postulate of Self-interest Must be Followed</a></li>
<li><a href="Lecture03/Section04.html">Section 4: Rationality is not Equivalent to Correctness</a></li>
<li><a href="Lecture03/Section05.html">Section 5: The Consequences of Ignoring the Postulate of Self-interest</a></li>
</ul>
</li>
<li><a href="Lecture04/">Lecture 4: Scarcity, Competition, Market, and Non-market</a><ul>
<li><a href="Lecture04/Section01.html">Section 1: Scarcity</a></li>
<li><a href="Lecture04/Section02.html">Section 2: Competition, Competition Criterion, and Game rule</a></li>
<li><a href="Lecture04/Section03.html">Section 3: The Postulate of Self-interest Must be Followed</a></li>
</ul>
</li>
<li><a href="Lecture05/">Lecture 5: Positive Economics and Normative Economics</a><ul>
<li><a href="Lecture05/Section01.html">Section1: Positive economics</a></li>
<li><a href="Lecture05/Section02.html">Section 2: Normative economics</a></li>
<li><a href="Lecture05/Section03.html">Section3: Value Judgment</a></li>
<li><a href="Lecture05/Section04.html">Section 4: The Problems of Welfare Economics</a></li>
</ul>
</li>
<li><a href="Lecture06/">Lecture 6: The History of Economic Thinking -- Microeconomics and Macroeconomics</a><ul>
<li><a href="Lecture06/Section01.html">Section 1: From Classical Economics to Neoclassical Economics</a></li>
<li><a href="Lecture06/Section02.html">Section 2: The Rise and Decline of Keynesian Economics</a></li>
<li><a href="Lecture06/Section03.html">Section 3: Price Theory and Monetary Theory</a></li>
<li><a href="Lecture06/Section04.html">Section 4: The Causes of the Great Depression</a></li>
<li><a href="Lecture06/Section05.html">Section 5: More Truths about the Great Depression</a></li>
</ul>
</li>
<li><a href="Lecture07/">Lecture 7: Equilibrium&#x2022;Optimum&#x2022;Margin</a><ul>
<li><a href="Lecture07/Section01.html">Section 1: Equilibrium and Optimum</a></li>
<li><a href="Lecture07/Section02.html">Section 2: The Concept of Margin</a></li>
<li><a href="Lecture07/Section03.html">Section 3: The Economic Implication of Marginal Analysis</a></li>
</ul>
</li>
<li><a href="Lecture08/">Lecture 8: The Law of Demand</a><ul>
<li><a href="Lecture08/Section01.html">Section 1: The Law of Demand and its Key Points</a></li>
<li><a href="Lecture08/Section02.html">Section 2: Ceteris Paribus</a></li>
<li><a href="Lecture08/Section03.html">Section 3: The Explanation of &#x201C;Buying on the upswing, Selling on the downswing&#x201D; in the Stock Market</a></li>
<li><a href="Lecture08/Section04.html">Section 4: The Selection of Other Factors &#x2013;Methodology of Science (2): Occam&#x2019;s Razor</a></li>
<li><a href="Lecture08/Section05.html">Section 5: The Role of the Law of Demand as An axiom</a></li>
</ul>
</li>
<li><a href="Lecture09/">Lecture 9: Supply Curve, the Theory of Supply and Demand, the Price Intervention by Government</a><ul>
<li><a href="Lecture09/Section01.html">Section 1: The Supply Curve</a></li>
<li><a href="Lecture09/Section02.html">Section 2: The Theory of Supply and Demand</a></li>
<li><a href="Lecture09/Section03.html">Section 3: The Traditional Analysis of Price Control and Its Problem</a></li>
<li><a href="Lecture09/Section04.html">Section 4: Price Control Causes Transaction Cost to Increase</a></li>
<li><a href="Lecture09/Section05.html">Section 5: Minimum Wage Laws Cause Unemployment</a></li>
<li><a href="Lecture09/Section06.html">Section 6: The Consequence of Agricultural Price Supports</a></li>
</ul>
</li>
<li><a href="Lecture10/">Lecture 10: Consumer Theory</a><ul>
<li><a href="Lecture10/Section01.html">Section 1: Two Axioms of Consumer Theory</a></li>
<li><a href="Lecture10/Section02.html">Section 2: Use Value VS Utility &#x2014; Methodology of Science (3): What is measure in science?</a></li>
<li><a href="Lecture10/Section03.html">Section 3: Indifference Curve</a></li>
<li><a href="Lecture10/Section04.html">Section 4: The Optimum of the Consumer</a></li>
<li><a href="Lecture10/Section05.html">Section 5: The Changes of the Optimum of the Consumer</a></li>
<li><a href="Lecture10/Section06.html">Section 6: Are there Giffen Goods?</a></li>
<li><a href="Lecture10/Section07.html">Section 7: From Individual Demand to Market Demand</a></li>
<li><a href="Lecture10/Section08.html">Section 8: Is There Theory of Elasticity?</a></li>
</ul>
</li>
<li><a href="Lecture11/">Lecture 11: The Concept of Cost</a><ul>
<li><a href="Lecture11/Section01.html">Section 1: Opportunity Cost</a></li>
<li><a href="Lecture11/Section02.html">Section 2: Historical Cost is not Cost</a></li>
<li><a href="Lecture11/Section03.html">Section3: The Disturbance of Historical Cost</a></li>
<li><a href="Lecture11/Section04.html">Section 4: The Laboratory in Economics</a></li>
</ul>
</li>
<li><a href="Lecture12/">Lecture 12: The Concept of Rent</a><ul>
<li><a href="Lecture12/Section01.html">Section 1: From Income and Cost to Rent</a></li>
<li><a href="Lecture12/Section02.html">Section 2: The Changeable Rent</a></li>
<li><a href="Lecture12/Section03.html">Section 3: The Concept of Rent from the First Perspective</a></li>
<li><a href="Lecture12/Section04.html">Section 4: The Concept of Rent from the Second Perspective</a></li>
<li><a href="Lecture12/Section05.html">Section 5: Profit</a></li>
</ul>
</li>
<li><a href="Lecture13/">Lecture 13: Direct Cost and Overhead Cost</a><ul>
<li><a href="Lecture13/Section01.html">Section 1: The Fallacy of Fixed Cost</a></li>
<li><a href="Lecture13/Section02.html">Section 2: Direct Cost and Overhead Cost</a></li>
<li><a href="Lecture13/Section03.html">Section 3: The Explanation of Producers&#x2019; Behaviors with Overhead Cost</a></li>
<li><a href="Lecture13/Section04.html">Section 4: The Principle of Rent Matching</a></li>
<li><a href="Lecture13/Section05.html">Section 5: The Form of Contract Affects Overhead Cost</a></li>
</ul>
</li>
<li><p><a href="Lecture14/">Lecture 14: Transaction Cost</a></p>
<ul>
<li><a href="Lecture14/Section01.html">Section 1: Transaction Cost is Indispensable</a></li>
<li><a href="Lecture14/Section02.html">Section 2: The History of Transaction Cost</a></li>
<li><a href="Lecture14/Section03.html">Section 3: From the Special Transaction Cost to the General Transaction Cost &#x2014; Methodology of Science (4): Ad Hoc Theory</a></li>
<li><a href="Lecture14/Section04.html">Section 4: The Perspective of Contract</a></li>
</ul>
</li>
<li><p><a href="Lecture15/">Lecture 15: Market Structure &#x2013; Price-Taking</a></p>
<ul>
<li><a href="Lecture15/Section01.html">Section 1: The Definition of Price-Taking</a></li>
<li><a href="Lecture15/Section02.html">Section 2: The Optimum of Producers</a></li>
<li><a href="Lecture15/Section03.html">Section 3: The Law of Diminishing Marginal Product</a></li>
<li><a href="Lecture15/Section04.html">Section 4: Average Cost</a></li>
<li><a href="Lecture15/Section05.html">Section 5: The Theory of Supply and Demand with Production</a></li>
<li><a href="Lecture15/Section06.html">Section 6: Consumer Surplus and Producer Surplus</a></li>
</ul>
</li>
<li><a href="Lecture16/">Lecture 16: Market Structure &#x2013; Price-Searching</a><ul>
<li><a href="Lecture16/Section01.html">Section 1: The Definition of Price-Searching</a></li>
<li><a href="Lecture16/Section02.html">Section 2: The Cause of Monopoly (I): Innate Talent</a></li>
<li><a href="Lecture16/Section03.html">Section 3: The Cause of Monopoly (II): Acquired Construction</a></li>
<li><a href="Lecture16/Section04.html">Section 4: The Ambiguous Antitrust Law</a></li>
<li><a href="Lecture16/Section05.html">Section 5: Administrative Monopoly</a></li>
<li><a href="Lecture16/Section06.html">Section 6: The Deadweight Loss of Monopoly</a></li>
<li><a href="Lecture16/Section07.html">Section 7: Turning Consumer Surplus to Producer Surplus</a></li>
<li><a href="Lecture16/Section08.html">Section 8: The Other Price Arrangements to Eliminate Deadweight Loss</a></li>
<li><a href="Lecture16/Section09.html">Section 9: Quality Competition</a></li>
<li><a href="Lecture16/Section10.html">Section 10: Cartels</a></li>
<li><a href="Lecture16/Section11.html">Section 11: The Fallacy of Game Theory</a></li>
</ul>
</li>
<li><a href="Lecture17/">Lecture 17: Information Cost</a><ul>
<li><a href="Lecture17/Section01.html">Section 1: Information Cost in Society</a></li>
<li><a href="Lecture17/Section02.html">Section 2: The Behaviors Reducing Information Cost</a></li>
<li><a href="Lecture17/Section03.html">Section 3: The Behaviors Increasing Information Cost</a></li>
<li><a href="Lecture17/Section04.html">Section 4: The Price-Searching Caused by Information Cost</a></li>
<li><a href="Lecture17/Section05.html">Section 5: Replacing Risk with Information Cost</a></li>
<li><a href="Lecture17/Section06.html">Section 6: Insurance</a></li>
<li><a href="Lecture17/Section07.html">Section 7: Adverse Selection and Moral Hazard</a></li>
<li><a href="Lecture17/Section08.html">Section 8: The Extremely Low Rate of Return of Social Pension Insurance</a></li>
<li><a href="Lecture17/Section09.html">Section 9: SOP is An Irrelevant Answer</a></li>
</ul>
</li>
<li><a href="Lecture18/">Lecture 18: The Theory of Interest</a><ul>
<li><a href="Lecture18/Section01.html">Section 1: The Causes of Interest</a></li>
<li><a href="Lecture18/Section02.html">Section 2: Interest Rate</a></li>
<li><a href="Lecture18/Section03.html">Section 3: The Discount Formula</a></li>
<li><a href="Lecture18/Section04.html">Section 4: From Asset to Capital, Annuity, Investment and Saving</a></li>
<li><a href="Lecture18/Section05.html">Section 5: The Separation Theorem</a></li>
</ul>
</li>
<li><a href="Lecture19/">Lecture 19: Monetary Theory</a><ul>
<li><a href="Lecture19/Section01.html">Section 1: The Functions of Money</a></li>
<li><a href="Lecture19/Section02.html">Section 2: The Value of Good VS the Value of Money</a></li>
<li><a href="Lecture19/Section03.html">Section 3: The Cause of Inflation</a></li>
<li><a href="Lecture19/Section04.html">Section 4: The History of Money</a></li>
<li><a href="Lecture19/Section05.html">Section 5: The Harm of Inflation and Deflation</a></li>
<li><a href="Lecture19/Section06.html">Section 6: The History of Paper Money</a></li>
<li><a href="Lecture19/Section07.html">Section 7: The Truth of Bretton Woods System</a></li>
<li><a href="Lecture19/Section08.html">Section 8: The Quantity Theory of Money</a></li>
<li><a href="Lecture19/Section09.html">Section 9: Money Multiplier</a></li>
<li><a href="Lecture19/Section10.html">Section 10: The Monetary Policy Tools of Central Bank</a></li>
<li><a href="Lecture19/Section11.html">Section 11: The Difficulty in the Target of Monetary Policy</a></li>
<li><a href="Lecture19/Section12.html">Section 12: The Formation of Zhu&#x2019;s Monetary System</a></li>
<li><a href="Lecture19/Section13.html">Section 13: From the Monetary Policy Regulating Economy to the Monetary System Stabilizing Money Value</a></li>
<li><a href="Lecture19/Section14.html">Section 14: The Monetary System Pegging Money to the Price Index of a Basket of Tradable Goods</a></li>
</ul>
</li>
<li><a href="Lecture20/">Lecture 20: Income Distribution, Wage Contract, Unemployment</a><ul>
<li><a href="Lecture20/Section01.html">Section 1: Income Distribution: Marginal Productivity Theory</a></li>
<li><a href="Lecture20/Section02.html">Section 2: Wage Contract</a></li>
<li><a href="Lecture20/Section03.html">Section 3: The Theory of Rent-encroaching</a></li>
<li><a href="Lecture20/Section04.html">Section 4: The Causes of Unemployment</a></li>
<li><a href="Lecture20/Section05.html">Section 5: Natural Rate of Unemployment</a></li>
</ul>
</li>
<li><a href="Lecture21/">Lecture 21: The Critique on Keynes&#x2019;s Theory of National Income Determination</a><ul>
<li><a href="Lecture21/Section01.html">Section 1: The Statistical Index of National Income: GDP</a></li>
<li><a href="Lecture21/Section02.html">Section 2: Is Saving Different From Investment?</a></li>
<li><a href="Lecture21/Section03.html">Section 3: The Problem in the Theory of Multiplier</a></li>
<li><a href="Lecture21/Section04.html">Section 4: The Problem in Keynes&#x2019;s Consumption Function</a></li>
<li><a href="Lecture21/Section05.html">Section 5: The Pandora&#x2019;s Box of Fiscal Deficit</a></li>
<li><a href="Lecture21/Section06.html">Section 6: The Crowding-out Effect of Government Expenditure</a></li>
</ul>
</li>
<li><a href="Lecture22/">Lecture 22: Business Cycle and Economic Growth</a><ul>
<li><a href="Lecture22/Section01.html">Section 1: Financial Crisis cannot Destroy Real Wealth</a></li>
<li><a href="Lecture22/Section02.html">Section 2: The Importance of Expectation/Confidence</a></li>
<li><a href="Lecture22/Section03.html">Section 3: The Determinants of Economic Performance</a></li>
</ul>
</li>
<li><a href="Lecture23/">Lecture 23: Coase Theorem</a><ul>
<li><a href="Lecture23/Section01.html">Section 1: The First Version of Coase Theorem</a></li>
<li><a href="Lecture23/Section02.html">Section 2: The Second Version of Coase Theorem</a></li>
<li><a href="Lecture23/Section03.html">Section 3: The Third Version of Coase Theorem</a></li>
</ul>
</li>
<li><a href="Lecture24/">Lecture 24: Externality</a><ul>
<li><a href="Lecture24/Section01.html">Section 1: The Cause of Externality</a></li>
<li><a href="Lecture24/Section02.html">Section 2: Seemingly no Market Implies Externality?</a></li>
<li><a href="Lecture24/Section03.html">Section 3: The Externality from the Perspective of Contract</a></li>
</ul>
</li>
<li><a href="Lecture25/">Lecture 25: Rent Dissipation</a><ul>
<li><a href="Lecture25/Section01.html">Section 1: The Concept of Rent Dissipation</a></li>
<li><a href="Lecture25/Section02.html">Section 2: The Relation between Non-Price Criteria and Rent Dissipation</a></li>
<li><a href="Lecture25/Section03.html">Section 3: The Core of the Theory of Price Control</a></li>
<li><a href="Lecture25/Section04.html">Section 4: Rent Dissipation as a Mode of Thinking</a></li>
</ul>
</li>
<li><a href="Lecture26/">Lecture 26 Political Economics</a><ul>
<li><a href="Lecture26/Section01.html">Section 1: The Nature of Nation from the Perspective of Economics</a></li>
<li><a href="Lecture26/Section02.html">Section 2: The Definition of Dictatorship and Democracy</a></li>
<li><a href="Lecture26/Section03.html">Section 3: Tyranny of the Majority</a></li>
<li><a href="Lecture26/Section04.html">Section 4: Arrow&#x2019;s Impossibility Theorem and the Median-Voter Theorem</a></li>
<li><a href="Lecture26/Section05.html">Section 5: Democratic Voting Infringes on PPRs</a></li>
<li><a href="Lecture26/Section06.html">Section 6: The Difficulties of Dictatorship</a></li>
<li><a href="Lecture26/Section07.html">Section 7: Three Utopias</a></li>
</ul>
</li>
</ul>
<h2 id="contributor">Contributor</h2>
<p>Author: Eileen Li</p>
<p>Translator: Chon Lam, Jian Chan, He Cheung </p>

                                
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